Correlation Between Fujian Newland and Shenzhen Zqgame
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By analyzing existing cross correlation between Fujian Newland Computer and Shenzhen Zqgame, you can compare the effects of market volatilities on Fujian Newland and Shenzhen Zqgame and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fujian Newland with a short position of Shenzhen Zqgame. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Shenzhen Zqgame.
Diversification Opportunities for Fujian Newland and Shenzhen Zqgame
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fujian and Shenzhen is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Shenzhen Zqgame in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zqgame and Fujian Newland is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fujian Newland Computer are associated (or correlated) with Shenzhen Zqgame. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zqgame has no effect on the direction of Fujian Newland i.e., Fujian Newland and Shenzhen Zqgame go up and down completely randomly.
Pair Corralation between Fujian Newland and Shenzhen Zqgame
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.78 times more return on investment than Shenzhen Zqgame. However, Fujian Newland Computer is 1.28 times less risky than Shenzhen Zqgame. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Zqgame is currently generating about -0.06 per unit of risk. If you would invest 1,995 in Fujian Newland Computer on November 1, 2024 and sell it today you would lose (5.00) from holding Fujian Newland Computer or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Shenzhen Zqgame
Performance |
| Timeline |
| Fujian Newland Computer |
| Shenzhen Zqgame |
Fujian Newland and Shenzhen Zqgame Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Shenzhen Zqgame
The main advantage of trading using opposite Fujian Newland and Shenzhen Zqgame positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland position performs unexpectedly, Shenzhen Zqgame can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shenzhen Zqgame will offset losses from the drop in Shenzhen Zqgame's long position.| Fujian Newland vs. Bank of China | Fujian Newland vs. Kweichow Moutai Co | Fujian Newland vs. PetroChina Co Ltd | Fujian Newland vs. Bank of Communications |
| Shenzhen Zqgame vs. Bangyan Technology Co | Shenzhen Zqgame vs. Jiugui Liquor Co | Shenzhen Zqgame vs. Air China Ltd | Shenzhen Zqgame vs. Guangzhou KingTeller Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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